Pan American Silver (NYSE:PAAS – Get Free Report) and Ivanhoe Mines (OTCMKTS:IVPAF – Get Free Report) are both large-cap materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Pan American Silver and Ivanhoe Mines, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pan American Silver | 0 | 3 | 7 | 0 | 2.70 |
| Ivanhoe Mines | 0 | 4 | 1 | 1 | 2.50 |
Pan American Silver presently has a consensus target price of $67.71, suggesting a potential upside of 44.55%. Ivanhoe Mines has a consensus target price of $15.20, suggesting a potential upside of 86.22%. Given Ivanhoe Mines’ higher probable upside, analysts clearly believe Ivanhoe Mines is more favorable than Pan American Silver.
Risk and Volatility
Profitability
This table compares Pan American Silver and Ivanhoe Mines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pan American Silver | 32.04% | 20.01% | 14.48% |
| Ivanhoe Mines | 23.47% | 5.07% | 3.81% |
Insider & Institutional Ownership
55.4% of Pan American Silver shares are held by institutional investors. 12.9% of Pan American Silver shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Pan American Silver and Ivanhoe Mines”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pan American Silver | $3.62 billion | 5.36 | $978.00 million | $3.31 | 14.15 |
| Ivanhoe Mines | $441.61 million | 26.36 | $261.55 million | $0.09 | 90.69 |
Pan American Silver has higher revenue and earnings than Ivanhoe Mines. Pan American Silver is trading at a lower price-to-earnings ratio than Ivanhoe Mines, indicating that it is currently the more affordable of the two stocks.
Summary
Pan American Silver beats Ivanhoe Mines on 10 of the 15 factors compared between the two stocks.
About Pan American Silver
Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.
About Ivanhoe Mines
Ivanhoe Mines Ltd. engages in the mining, development, and exploration of minerals and precious metals primarily in Africa. It explores for platinum, palladium, nickel, copper, gold, rhodium, zinc, silver, germanium, and lead deposits. The company's projects include the Platreef project located in the Northern Limb of South Africa's Bushveld Complex; the Kipushi project located in Haut-Katanga Province, Democratic Republic of Congo; and the Kamoa-Kakula project located within the Central African Copperbelt. It also holds a 100% interest in the Western Foreland exploration project covering an area of approximately 2,407 square kilometers located in the Democratic Republic of Congo. The company was formerly known as Ivanplats Limited and changed its name to Ivanhoe Mines Ltd. in August 2013. The company was incorporated in 1993 and is based in Vancouver, Canada.
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